Hello everybody - I have an interesting situation for my daughter's state tax filing(s).
She is a full-time student at ISU and was offered an internship during the summer of 2023 (started mid-May through 1st week in Aug.) with the company headquartered in Omaha, NE but with her workplace in Counsil Bluffs, IA.
She was temporarily housed a few miles away from her workplace over the state line in Omaha, NE at the University of Nebraska.
She did not list her full-time residency as IL to their payroll department for IL withholdings.
The company listed her temporary mailing address (NE) where she was being housed at on her W2's (Box e).
Her wages (Box 16) were taxed (Box 17) by the state of IA and a very small percentage by the State of Nebraska.
I entered all her info into TT for IL's state tax filing from her W2's as "other state income tax (IA, NE) paid" (even though IL and IA have a state tax reciprocal agreement).
Now, because state income taxes were withheld for both of those two states, I think I need to file for each state respectively as a non-resident filer (even though the company put her up temporarily at a NE address for the case of the NE state filing).
Is this correct or do I need to go through the trouble of having a correction submitted in the case of IA to get the state taxes refunded for IL residents (and not sure respectively for NE because they do not have a reciprocal agreement with IL & IA)?
TT deducted both the IA and NE taxes from her IL taxes due and I did not get any error check, so I assume this is ok.
Thanks.
